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Westpac NZ announces changes to fixed term home loan rates.

9 Dec 2025

Westpac NZ is making changes to its advertised Choices fixed term home loan rates, after significant increases in wholesale interest rates following late November’s OCR announcement.

Effective Wednesday, Westpac is cutting its 6-month advertised special rate to 4.69% p.a. - the lowest of the five biggest banks as of 3pm Tuesday - and lifting its rates on the longer 2-to-5-year terms by 0.30%.

At the same time, Westpac is supporting savers with broadly similar increases to its longer-term deposit rates.

As noted by a number of commentators, including Westpac’s Economics team, funding costs for fixed home loans have risen sharply since the last OCR cut.

Westpac NZ Managing Director of Product, Sustainability and Marketing, Sarah Hearn, says while it is raising longer-term rates, Westpac is holding back some of those cost increases for customers.

“We were the first of the five biggest banks to cut our variable lending rates following the official cash rate cut two weeks ago,” Ms Hearn says.

“Conversely, fixed rates are mainly driven by movements in wholesale interest rates rather than the OCR. While the OCR has fallen, wholesale rates have lifted materially, by more than 0.4% on longer terms since the day before the OCR announcement.

“With today’s changes, we’re holding back some of the increase in wholesale borrowing costs to customers, while also offering great value for those looking for short-term flexibility with our new 6-month advertised special rate.

“We also know savings customers are watching falling interest rates closely, and we’re moving to support them by raising all term deposit rates one year or longer. We’ve held our variable Notice Saver rate unchanged at 3.00% p.a. through the last three OCR cuts, which is a good option for those who would rather lock in their money for a shorter time frame.

“Whether you’re a borrower or a saver, we encourage you to come and talk to us, or a trusted advisor, on what approach may work best for you through 2026 and beyond.”

Editor’s note: Change in end-of-day wholesale rates (% p.a.) (Source: Reserve Bank of New Zealand)

	1-year	2-year	3-year	4-year	5-year
Tues 25 Nov (pre-OCR)	2.40	2.59	2.79	2.98	3.14
Wed 26 Nov (post-OCR)	2.48	2.70	2.90	3.08	3.24
Thurs 27 Nov	2.53	2.79	3.00	3.18	3.33
Fri 28 Nov	2.55	2.86	3.09	3.27	3.41
Mon 1 Dec	2.55	2.89	3.14	3.32	3.47
Tues 2 Dec	2.54	2.86	3.13	3.33	3.50
Wed 3 Dec	2.54	2.83	3.08	3.27	3.44
Thurs 4 Dec	2.54	2.87	3.10	3.29	3.44
Fri 5 Dec	2.57	2.90	3.14	3.32	3.48
Mon 8 Dec	2.64	2.99	3.25	3.44	3.60
Increase since 25 Nov	0.24	0.40	0.46	0.46	0.46

Westpac Choices Fixed Home Loan rates – Special (effective Wednesday 10 December)

Term	New Rate	Change
6 months	4.69% p.a.	-0.20%
1 year	4.49% p.a.	No change
18 months	4.45% p.a.	No change
2 years	4.75% p.a.	+0.30%
3 years	5.05% p.a.	+0.30%
4 years	5.29% p.a.	+0.30%
5 years	5.29% p.a.	+0.30%

Westpac Choices Fixed Home Loan rates – Standard (effective Wednesday 10 December)

Term	New Rate	Change
6 months	5.29% p.a.	-0.20%
1 year	5.09% p.a.	No change
18 months	5.05% p.a.	No change
2 years	5.35% p.a.	+0.30%
3 years	5.65% p.a.	+0.30%
4 years	5.89% p.a.	+0.30%
5 years	5.89% p.a.	+0.30%

Interest rates are subject to change without notice. Westpac NZ’s lending and eligibility criteria, and terms and conditions apply. A low equity margin may apply. For more information, please go to www.westpac.co.nz

Westpac Term Deposit & Term PIE rates (effective Wednesday 10 December)

Term	Interest Frequency	New Rate*	Change
30 days	At Maturity	1.80% p.a.	No change
60 days	At Maturity	1.90% p.a.	No change
90 days	At Maturity	2.85% p.a.	No change
4 months	At Maturity	3.00% p.a.	No change
5 months	At Maturity	3.10% p.a.	No change
6 months	At Maturity, Monthly or Compounding	3.45% p.a.	No change
8 months	At Maturity, Monthly or Compounding	3.40% p.a.	No change
9 months	At Maturity, Monthly or Compounding	3.40% p.a.	No change
12 months	At Maturity, Monthly or Compounding	3.50% p.a.	+0.10%
18 months	At Maturity, Monthly or Compounding	3.50% p.a.	+0.10%
2 years	At Maturity, Monthly or Compounding	3.75% p.a.	+0.30%
3 years	At Maturity, Monthly or Compounding	3.90% p.a.	+0.30%
4 years	At Maturity, Monthly or Compounding	4.10% p.a.	+0.30%
5 years	At Maturity, Monthly or Compounding	4.20% p.a.	+0.30%

*Rates are subject to change without notice. Minimum $5,000 deposit. Rates are available for Retail and Business Banking customers holding up to $5,000,000 total deposits, either solely or jointly with Westpac NZ (including PIE investments). For rates applicable to amounts in excess of $5,000,000, please contact us. Rates are not available to Financial Institutions. Other T&Cs apply, see westpac.co.nz for details and a copy of the relevant Term Sheet. Compounding interest: For terms six months or longer, interest can be compounded quarterly.

Investments made in the Westpac Term PIE Fund (“Fund”) do not represent bank deposits or liabilities of Westpac Banking Corporation ABN 33 007 457 141, Westpac New Zealand Limited (“Westpac NZ”) or any other member of the Westpac group of companies. They are subject to investment and other risks, including possible delays in payment of withdrawal amounts in some circumstances, and loss of investment value, including principal invested. None of BT Funds Management (NZ) Limited (as manager), any member of the Westpac group of companies, Trustees Executors Limited (as trustee), or any director or nominee of any of those entities guarantees the Fund’s performance, returns or repayment of capital.